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Distribution Strategies Toward Nanostores in Emerging Markets: The Valencia Case

Author

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  • Youssef Boulaksil

    (College of Business and Economics, UAE University, Al Ain, United Arab Emirates)

  • M. Jaafar Belkora

    (Agro Juice Processing, Casablanca, Morocco)

Abstract

In many megacities in emerging markets, customers typically buy products for their daily needs from small retailers (nanostores). Distributing these products, such as water, soap, and cooking oil, to the nanostores is a challenging task, mainly because the nanostores have limited cash availability and they make decisions randomly. In this paper, we compare the performance of two commonly used distribution strategies: the presales strategy and the van sales strategy. Our analysis is based on a study we conducted in Casablanca in collaboration with Valencia, a fruit juice manufacturer. The study reveals several insights that are useful to manufacturers who face challenges in distributing goods in large cities in emerging markets.

Suggested Citation

  • Youssef Boulaksil & M. Jaafar Belkora, 2017. "Distribution Strategies Toward Nanostores in Emerging Markets: The Valencia Case," Interfaces, INFORMS, vol. 47(6), pages 505-517, December.
    • Handle: RePEc:inm:orinte:v:47:y:2017:i:6:p:505-517
    DOI: 10.1287/inte.2017.0914
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    Cited by:

    1. Bram Kin & Tomas Ambra & Sara Verlinde & Cathy Macharis, 2018. "Tackling Fragmented Last Mile Deliveries to Nanostores by Utilizing Spare Transportation Capacity—A Simulation Study," Sustainability, MDPI, vol. 10(3), pages 1-15, February.
    2. Camilo Andrés Mora-Quiñones & Leopoldo Eduardo Cárdenas-Barrón & Josué C. Velázquez-Martínez & Karla M. Gámez-Pérez, 2021. "The Coexistence of Nanostores within the Retail Landscape: A Spatial Statistical Study for Mexico City," Sustainability, MDPI, vol. 13(19), pages 1-17, September.
    3. Fransoo, Jan C. & Escamilla, Rafael & Ge, Jiwen, 2024. "Nanoretail operations in developing markets," Other publications TiSEM 11ea94fa-87eb-41ca-89f6-b, Tilburg University, School of Economics and Management.
    4. David Hidalgo-Carvajal & Edgar Gutierrez-Franco & Christopher Mejia-Argueta & Helen Suntura-Escobar, 2023. "Out of the Box: Exploring Cardboard Returnability in Nanostore Supply Chains," Sustainability, MDPI, vol. 15(10), pages 1-16, May.
    5. Shin, Youngchul & Lee, Sangyoon & Moon, Ilkyeong, 2020. "Robust multiperiod inventory model considering trade-in program and refurbishment service: Implications to emerging markets," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 138(C).
    6. Boulaksil, Youssef & Fransoo, Jan C. & Blanco, Edgar E. & Koubida, Sallem, 2019. "Understanding the fragmented demand for transportation – Small traditional retailers in emerging markets," Transportation Research Part A: Policy and Practice, Elsevier, vol. 130(C), pages 65-81.
    7. Rafael Escamilla & Jan C. Fransoo & Christopher S. Tang, 2021. "Improving Agility, Adaptability, Alignment, Accessibility, and Affordability in Nanostore Supply Chains," Production and Operations Management, Production and Operations Management Society, vol. 30(3), pages 676-688, March.

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